USD/JPY Declines, Fails to Break Through 200-Day Moving Average【January 9, 2024】
Fundamental Analysis
U.S. stock indices surge, with NASDAQ skyrocketing
USD/JPY faces resistance at the 200-day moving average
A candlestick pattern similar to ‘Evening Star’ appears in USD/JPY
USDJPY Technical Analysis
Analysis of the daily chart for USD/JPY shows a decline after failing to break through the 200-day moving average. A pattern with an extended upper shadow is observed, forming an ‘Evening Star’ signal with a sequence of ‘bullish candle + doji + bearish candle’.
Selling pressure is concentrated around the halfway mark of the Fibonacci retracement, intensifying the downward momentum. The RSI is below 50, acting as resistance. Currently, there’s a high possibility of forming a retracement high, with the 23.6% level at 143 JPY being the next critical support zone.
Day Trading Strategy (1-Hour Chart)
Analysis of the 1-hour chart for USD/JPY. The 90 moving average is acting as a support line, and breaking below this line could lead to a significant drop. The RSI is at 47, indicating a downward trend. Considering currency strength, the USD is slightly dominant, and the market could temporarily retrace to around 144.40 JPY.
The range from 144.44 to 144.65 JPY forms a significant resistance zone, with the Ichimoku cloud also nearby, likely to be strongly acknowledged by market participants.
The day trading strategy is to aim for selling on the rebound, with a sell entry at 144.44 JPY, take profit at 143.50 JPY, and stop loss at 144.89 JPY.
Support and Resistance Lines
Upcoming resistance lines to consider:
144.40 JPY – Major resistance line
Market Sentiment
USDJPY: Sell: 61%, Buy: 39%
Today’s Important Economic Indicators
Economic Indicators and EventsJST (Japan Standard Time)Tokyo Core Consumer Price Index8:30Australian Retail Sales9:30Canadian Building Permits22:30
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.
Risk Disclaimer
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
This analysis is for educational purposes only and does not constitute investment advice. Trading forex and CFDs involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results.
